Apple Buys Dr. Dre’s Beats for $3 Billion

Jimmy Iovine, Tim Cook, Dr. Dre, and Eddy Cue

It’s official. Nearly three weeks after initial reports, Apple has agreed to acquire Beats Electronics and Beats Music, founded in 2008 by Dr. Dre and Jimmy Iovine.

Apple is acquiring the companies for a total of $3 billion, consisting of $2.6 billion in cash and $400 million in Apple stock.

The deal, which is expected to close before the end of September, is the most expensive acquisition in Apple’s 38-year history, and includes the subscription streaming music service Beats Music, and Beats Electronics, maker of Beats headphones, speakers, and audio software.

As part of the acquisition, Dre and Iovine will both become key executives in Apple’s music divisions.

“We have known these guys forever,” Apple CEO Tim Cook told the AP. “We’ve dated, we’ve gone steady and now we are getting married. This relationship started a decade ago, so we know there is an incredible cultural fit. These two guys have a very rare set of skills. It’s like finding a particular grain of sand on the beach. It’s that rare.”

Dr. Dre was seen celebrating the news earlier this month in a video posted online.

“The first billionaire in hip-hop right here from the motherfu**ing West Coast,” declared Dre.

According to Forbes, the deal would bump Dre’s net worth to around $800 million. While not quite enough to land on the Forbes 400, it would easily make him hip-hop’s wealthiest mogul, topping current champ Diddy by $100 million.



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21 Comments

  1. Usher

    Congrats Dre!

    [Reply]

    @AveryVenture Reply:

    @Usher,

    Aye! Check out my boy Steve! #BlueDevilsStandUp #Duke
    #WeOutChea

    [Reply]

    Flossi Butterfly Reply:

    @Usher, So proud of you Dr. Dre

    [Reply]

  2. KENBARBUK

    King.

    [Reply]

  3. Fubu

    cool cool, now DETOX PLEASE!!!…..

    [Reply]

  4. how stupid dre

    DRE u were just fine with HP Computers & LG. duh it’s a fact that Apple wants to be on top, so no one can beat them 2 the top with this whole marketing. it’s just like At&t’s bullshit too. it might make dre money & all but a bad choice for choosing Apple’s marketing decision.

    [Reply]

  5. asghin

    the rich get richer

    [Reply]

  6. asghin

    the rich get richer

    [Reply]

  7. gee

    see diddy, dre didn’t have to talk about his money for the last ten years ( hell, he wore a black t shirt for the last 20 years) instead of rubbing his money in poor people face… how does it feel that its going to take you years to catch up???

    [Reply]

    ProfessorXavier Reply:

    @gee, According to Forbes, the deal will not make Dre a billionaire just yet.

    [Reply]

    K Reply:

    @ProfessorXavier, don’t matter it,s a start.

    [Reply]

    gee Reply:

    @ProfessorXavier, I didn’t say it will, but diddy won’t catch him.

    [Reply]

    Rozay-MMG Reply:

    @gee, first off its only a 100mill. We know Diddy the past 15 years and one new deal for Diddy could have him over take in the next 1-2years. Also why is it a competition?? Why not just take inspiration from this and find your own success.

    [Reply]

    Gee Reply:

    @Rozay-MMG, that’s my freakin point idiot. Dre has been inspiring people for years while diddy has belittled people by always counting his money. I recognized this LONG AGO. Now that dre’s on top (which he is) ppl can take a page from his book and work hard without always talking about it.

    [Reply]

  8. KT

    Nice.

    Now make some better headphones that don’t break like glass.

    [Reply]

  9. vih

    kingDre” No Diddy or jay!fake ass..

    [Reply]

    Bitches In Paris Reply:

    @vih, stfu stupid dike

    [Reply]

  10. vih

    R.I.p Pac!! westcoast

    [Reply]

  11. Os

    Congratz Dr-Dre.

    [Reply]

  12. joe

    $3 BILLION! Another giant company proving yet again how excessively valuable data has become. It only makes sense that Beats streaming service is what Apple are after. They’ve finally realized that no one really wants to buy music anymore everyone just wants to stream it i.e. Spotify. I’m sure Apple will use Beat’s streaming service to try give spotify competition. Dre congrats but don’t forget to give a portion of that money to whoever came up with the streaming service capability (unless it was you). Sharing is caring!

    [Reply]

  13. ced

    dre. let me hold a dollar.

    [Reply]

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